Nate Dirickson November 2009

1. Nate Dirickson November 2009

2. Agenda Introduction and Overview • Service Description • Regulatory & General Ts & Cs • Design • Geographic Deployment • Design Parameters • Service Delivery Configurations • Pricing & Forecast • Marketing • Life Cycle • Marketing Plans • Strategies

3. Product Description Hub A C F D E Multiple Locations with Frame Relay Each site requires one access line and port on the router Frame Cloud Frame Relay Service Description • Frame Relay entered the standards world in 1984 [CCITT] • Frame Relay is connection-oriented, high efficiency, low overhead, and includes error detection • DS-0 to DS3 digital network interface for bursty data: packets sizes to 1500 bytes. • Frame Relay is a secure Layer 2 technology routinely used in Banking as well as for government customers requiring DOD-secure communication. • Technology supports basic, mission critical, and business continuity requirements • Supports LAN’s for internets, intranets, and extranet access to multiple locations • Services include: • FRASI [Frame Relay ATM Svc Interworking ] • Premier PVC [prioritized traffic per PVC] • UNI Port Only & NNI Port Only • CPE is industry standard equipment. CPE requires onlythe CSU/DSU and a router/FRAD [CPE not supplied].

4. Regulatory Frame Relay Regulatory & General Ts & Cs • Standard Frame Relay service is authorized WVir through P.S.C West Virginia #207. • West Virginia FRS pricing has been deregulated. • Multijurisdictional FRS is authorized in WVir through FCC Tariff #20. • All services greater than 200 Kbps are forborne and detariffed for Verizon. • Standard Contract Terms: • Month-to-Month [NRC and MRC Charges] • 1 year [MRC Charges ONLY] • 3 years [MRC Charges ONLY] • 5 years [MRC Charges ONLY] • Renewals are not restricted in number and should be equivalent to one of the standard contract terms above. • TLA charges @ 25% of remaining MRCs [waived for tech upgrade] • SLAs are provided for PSC through ICB only. FCC through PC • MTTR 4 hours; Availability 99.95%; Provisioning 100% on time.

5. ILEC Platform West Virginia LATAs and Facility Deployment New Ciena DN 7100 Switch going into Martinsburg facility to enable West Virginia network to separate from Verizon facilities in Maryland

6. Design Section Frame Relay Design Parameters • Oversubscription: • Total BW for multiple PVCs on a single UNI can exceed DS-1 UNI BW by 300%, DS-3 UNI by 200% • All PVCs are full duplex with Bc and Be policy the same in both directions. • Pricing matrix is based on this configuration. • PVC Maximum allowable Bandwidth vs. Line Speed [lowest port speed on the circuit] • < DS-0 to DS-1: PVC 75% of Line Speed • > DS-1 to DS-3: PVC 50% of Line Speed Original Design Specification for ILEC PVC Speed Schedule

7. Design Section FRS Design Parameters [Continued] Low Speed [4 Kbps to DS-1] Line Speed: equals lowest port speed All Low speed PVCs burst to Line Speed Maximum PVC = ¾ of lower Port Speed Sustained bursting allowed PVC Burst PVC CIRs PVC Speeds Charleston Port Clarksburg Port Hi Speed [2 Mbps to 22 Mbps] Line Speed: equals lowest port speed All Hi speed PVCs burst 2 times CIR Sustained bursting allowed Maximum PVC = ½ of lower Port Speed PVC Burst PVC CIRs PVC Speeds Charleston Port Clarksburg Port

8. Design Section ATM Host Service Delivery: Standard + FRASI PVC CIR Standard PVC CIR + Frame Relay to ATM Service Interworking (FRASI) – a logical channel path from a customer FRS port to an ATM port located in the same LATA. Standard PVC-CIR + Interworked PVC-CIR (FRASI) Port & Access Port & Access End User VZ ATM Switch VZ FRS Cloud State Tariffed FR Port FCC TariffedATM Port VZ Network Billing Elements for this configuration: • FRS Port and Access • FRS Standard PVC-CIR • ATM Interworking CIR [no charge] • ATM Port and Access Jurisdiction depends on level of interstate traffic over a port. • Less than 10% = State-tariffed Port • 10% or greater = FCC-Tariffed Port

9. Design Section Intrastate FRS Host Interstate (IntraLATA)FRS PVCs Multi-J PVC FRS PVCs Service Delivery: ILEC FR PVC’s to an LD Carrier LATA XYZ LATA ABC ILEC PVC(s) LD Carrier PVC Port and Access Port and Access FCC Port VZ ILEC FRS Cloud LD FR/ATM Network Interstate NNI Port • NNI Ports purchased from the VZ ILEC are interstate (FCC tariff). ILEC FCC Frame Relay customers requiring LD FR PVCs typically order FCC FR PVCs (IntraLATA PVC CIR) mapped to the GNS NNI Ports. • ILEC Intrastate FR customers may order state tariffed Multi-jurisdictional PVCs mapped to the LD Carrier’s NNI Ports using the following guidelines: - If 100% of the traffic carried by a FR PVC mapped to/from a state tariffed FR port is intrastate in nature, a state tariffed Intrastate PVC may be ordered (PVC may be mapped PSC to FCC). - If 10% or more of the traffic carried by a state tariffed FR PVC is interstate in nature, a state tariffed FR Multi-jurisdictional PVC should be ordered (MJ PVC mapped PSC to FCC). - If10% or more of the traffic traversing the FR port is interstate in nature, the FR port should be ordered via the FCC FR tariff.

10. Design Section Primary UNI FRS Backup UNI Primary UNI Premier PVC ILEC FRS Priority Data Center Service Delivery: Backup UNI & Premier PVCs • Backup UNI Service • Disaster Recovery/Avoidance • Backup UNI with no PVCs during normal operations. • Not automatic – requires customer request. • No setup fee. • Activation/deactivation NRC of $200. • Premier PVC • Dedicated PVC configured to prioritize traffic • PVC intended for delay-sensitive, loss-intolerant data, or mission critical traffic. • Surcharge $11.00/month added to standard PVC MRC

11. Pricing Frame Relay Service Pricing: Ports • Representative sample of FCC and PUC Port Pricing for different Term Pricing Plans [TPPs]

12. Pricing Frame Relay Service Pricing Matrices: PVCs • Representative sample of FCC and PSC PVC Pricing • PVC Rates for Standard and for ATM Interworking are identical.

13. Pricing – Contracting Methodology: • MTW: Matrix-to-Web automation for generating customer-ready quotes and contracts for requests with standard Ts and Cs. • PSC • Sales teams inputs the contract term and details the services required by the customer • MTW applies a term and volume discount [~25%] to the tariff pricing for each service element to be in the customer contract • MTW generates a firm quotation and a customer-ready contract if there are not changes needed. • FCC • Pricing of FCC service elements will be in accordance with FCC #20 tariff structure with no discounts for port speeds above 200 Kbps. Private Carriage Contract is generated in accordance with Forbearance process. • For service elements with port speeds below 200 Kbps, Sales follows standard Application for Service (AFS, i.e. ordering from tariff) process.

14. Marketing Discussion and Questions

15. Backup Collateral • Detailed PSC Pricing Schedules • SLA metrics and measurement for compensation • NNI Port Only Design Configurations • Detailed Rules for Burst Policies [Hi and Low Speed]

16. Dereg PSC Pricing West Virginia FCC pricing available in FCC Tariff #20

17. Dereg PSC Pricing West Virginia [CONTINUED] FCC pricing available in FCC Tariff #20

18. SLA Ntwk Av, MTTR and Provisioning:Thresholds, Penalties and Caveats -- Local FP SLAs Network Availability • *Excludes non-Verizon troubles (e.g. CPE, TOK, etc.) & maintenance • **SLA credits will not exceed 100% of MRC per circuit -- applicable if other SLA metrics are violated within SLA marking period • Threshold: 99.9% • Penalty: 10% of MRC per circuit if and only if Total Network Average threshold is violated MTTR • *Excludes non-Verizon troubles (e.g. CPE, TOK, etc.) & maintenance • **Based upon Total Network Average • ***SLA credits will not exceed 100% of MRC per circuit -- applicable if other SLA metrics are violated within SLA marking period • Threshold: 4/8 hrs • Penalty: 50/100% of MRC per circuit if and only if Total Network Average threshold is violated On-Time Provisioning • *Where facilities available • **SLA credits will not exceed 100% of MRC per circuit -- applicable if other SLA metrics are violated within SLA marking period • Threshold: 100% On-Time • Penalty: 50% of MRC per circuit

19. Design Section HI Speed Model … HI Speed Line Rate … Be Low Speed Model Red Frames … Low Speed Line Rate Be Bc Amber Frames Amber Frames … Bc Green Frames Green Frames … Tc Tc 0 Second 1/3 Second 2/3 Second 3/3 Second 0 Second 1/3 Second 2/3 Second 3/3 Second FRS Design Parameters [Continued] • Excess Burst Configurations: [Bc = Committed BW, Be = Excess Burst BW] • BC is set at the customer requested [average] BW requirement for the service. • Typical Configurations: Be = Bc or Be = Line Speed – Bc , or Be = Zero. the Bc to the line speed. • Some circuits are set at Be = 0. This is rare can causes problems • Discard Eligible Marking • Graceful Discard feature is generally turned off on the Lucent switches. Some PVCs are enabled. • Packets sent up to BC are marked Green. Delivery probability above three 9s. • Packets above BC are marked DE [Amber]. Delivery probability is “Best Effort.” • Packets above Bc + Be are marked DE [Red]. Discard if congestion encountered. • High speed circuits are configured with BC = Be. Example BC = Be = 4 Meg. • Packets transmitted above 8 Meg are marked DE … Red.